The income statement for Symbiosis Manufacturing Company for 2018 is as follows: $\begin{array}{lr}
\text { Sales }(10,000 \text { units) } & \$ 120,000 \
\text { Variable expenses } & 72,000\
\text { Contribution margin } & \$ 48,000 \
\text { Fixed expenses } & {36,000} \
\text { Operating income } & \${12,000}
\end{array}$
What is the contribution margin ratio?

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as the contribution margin divided by sales. Here, it is $48,000 / $120,000 = 0.40 or 40%.

The Income Statement for Symbiosis Manufacturing Company for 2018 Is